Forex Strategy «Lightning» was sent to me trader Dzherel’nyi Vladimir and he claims «strategy is absolutely one hundred percent», and since I personally mostly stick to this style of trade (ie trade patterns and graphical models forex), then decided it and publish it; suitable for trading the currency pair EURUSD, the time-frame: M15, H1, H4 (trade opportunities and on the M30 and M5).
- And so, on the EURUSD chart indicator set, drawing fractals by Bill Williams — Fractals (which is present in any trading platform Metatrader 4, all the recommended DC and not just forex).
So do we need a tool MT4 — «Fibonacci Channels» (Fibo Channel) with the established levels: 0.15, -0.15, -0.85, -1.15 (who will tell us a 15-percent band-drawn us Fibonacci Channel). How to add the following levels:
- inserting a channel on the Fibonacci graph arbitrarily
- go to its properties
- Tab Fibonacci «- delete all the levels and adds his own: 0.15, -0.15, -0.85, -1.15 (for example see the figure):
As a result, you will have the channel with additional levels on both sides of the channel!
Now proceed to consider the strategy «Lightning»
It’s no secret that the waves on the forex is constantly going up or down. The strategy «Lightning» is to make a profit on the development of our third wave — see the picture:
Transactions of the strategy «Lightning», we conclude after a 4-step process:
1) Wait until the graph is formed two fractal trend, the distance between two points is equal to several dozen items — such as 20-50-100 (less is not desirable, since then, and the desired profit is very small)
2 fractals trend — a trend at the beginning and end of which there are fractals and they are not in the middle:
2) Once the chart formed two fractal, we build the channel Fibonacci(with established levels) so that 2 points of reference in line werejust on these fractals:
3) Now we wait until the chart appears in the third fractal, and build it through a parallel line of the Fibonacci Channel (ie, we move our parallel line). Do not forget that for the formation of a fractal must be at least 5 candles, and the average of which is marked by an arrow
4) After the canal was built, we provide a horizontal level in the 2 nd fractal — the horizontal red line (at the end of the 1 st wave) and a vertical line through the intersection of the 15% level and gorizonzontalnogo level:
For issuing a pending order to buy — Buy Stop (pictured above left) or a pending order for sale — Sell Stop (pictured above right), you must wait until the candle opens on the right of the vertical line and set aside the order slightly above the horizontal level (1 — 3 points higher or lower, depending on the direction of trade).
Stop-loss is placed below the third fractal (pictured above left) — for transactions for the purchase of or above the third fractal (pictured above right) — for bargains on sale!
Profit target is 80% of the distance from 1 up to the third fractal.
An example of the transaction and placement of orders for the strategy «Lightning», see below:
Now let’s consider the options of various deviations from the rules of strategy «lightning», because that strategy will not work with «absolute» guarantee of profit (respectively up to you, to trade under these conditions or not):
1. First of all, you may experience difficulties in identifying suitable for «lightning» dvuhfraktalnogo trend, or in other words, the definition of the 1 st wave. Despite the fact that there is nothing complicated about opredelinii no wave, but the 1-th wave is not suitable for trading, if contains the other waves (extra) for their recognition can be used an indicator EMA (2) — exponential moving average with period 2, it should be used for bottom-up waves to Low, and for waves downward — to the High. EMA (2) throughout the 1-st wave should not be directed in the opposite direction, or be horizontal, otherwise dvuhfraktalny trend will be deemed unfit for «lightning,» an example of looking at the picture:
2. The second wave is not suitable, if the fractal candle ends in the direction of the second wave, and then formed its fractal candles are completed, the body which are located either at the level of the fractal candles Dodge or «plus sign»:
or farther in the direction of the wave:
3. The second wave should not end below the first wave for the «zipper up » and higher than the first wave for a «lightning down:
4. and 2 nd wave must always be greater than 1 / 4 of the value of the first wave. To check, do the following: install a horizontal line at a point between two reference points of our channel and the upper part of the wave visually split in half — this will be a quarter of a wave:
Ideal — when the 2 nd wave of fighting off the 50% level of the first wave, ie from the line to the middle point of the channel!
5. Number of candles 1-st wave must exceed the number of candles the 2 nd wave, the candles are on the fractal to fractal inclusive, fractal candle end of the first wave and second wave is beginning in the first and second wave.
6. Pending order should be removed at the beginning of the formation of candles for the vertical level of the intersection of the horizontal level, conducted by the maximum of the first wave, with the second 15% level of the channel:
7. You should also delete the pending order if one of the candles the third wave with his shadow out and closed the 15% level Fibonacci Channel:
That’s basically all the rules! Of course they are not small, but it isonly at first sight, after analyzing some count charts the history, the wrong model eliminated themselves.
